Despite of having a monopoly of sorts in the segment, as rivals Baleno and i20 do not offer diesel engine option, Tata has slashed prices of Altroz diesel
Only last month, Tata Motors increased the price of some of it’s line-up. This included Tata Altroz. Price revision was attributed to ‘evolving market conditions, changes in input costs and other economic factors.’
But about 5 weeks later, something seems to have changed. And now, almost the entire Tata Altroz diesel range is available with a price reduction of a flat 40k, as compared to Aug 2020 prices.
If this is a market correction, it bodes well cause current prices are lower than what they were prior to the price hike last month. Only diesel; XE and XE Rhythm prices remain unchanged. Tata Motors hasn’t only reduced price, but have effectively offered a discounted price within less than 10 months of Altroz diesel being in the market.
It’s only fair to spare a moment for existing diesel Altroz owners, who would now be thinking, if only we’d waited cause Tata Altroz diesel range price points are now lower than what they were at launch.
But what if there’s another reason for the price hike. Humour us for a moment. The diesel offering is most likely meant to work as a USP for Tata Altroz cause the segment is sparse when it comes to diesel cars.
Maruti Suzuki Baleno and Hyundai i20 are not available in a diesel engine option, and the only other car that does offer a diesel option in the segment, is Ford Freestyle. For the others, it’s a petrol run. Baleno continues to dominate the market, while Hyundai i20 sales ensure second spot.
Last month Altroz secured third place in the sales order. Cumulative Baleno and i20 sales are in the vicinity of 18k a month. Tata Altroz sales was just below 5K. At this time, having a diesel engine isn’t proving to be advantageous.
Other segment offerings include Toyota Glanza based on Baleno, Volkswagen Polo, and Honda Jazz, all of which are petrol offerings. Of course just having a petrol car doesn’t guarantee high sales, as in the case of Toyota Glanza or Honda Jazz.
Discounts are usually introduced with a single focus, a planned sales boost. It’s left to be seen, how this affects overall Altroz sales, and whether or not the discount can infuse further sales growth. With petrol being the dominating force in the premium hatch segment, a discount on Tata Altroz diesel models isn’t likely to switch market demand. It could however help improve diesel sales.
Whether it’s a market situational change, or a much needed price correction, the fact that it has happened is not a common phenomenon. Prices are rarely reduced to lower than previously increased in a matter of weeks.